Global Butanediol Market Insights, Size, and Forecast By Type (1, 4-Butanediol, 2, 3-Butanediol, Butylene Glycol), By Application (Solvents, Plasticizers, Polyurethanes, Coatings, Fibers), By End Use Industry (Automotive, Textile, Construction, Electronics, Pharmaceuticals), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), Key Companies, Competitive Analysis, Trends, and Projections for 2026-2035
Key Market Insights
Global Butanediol Market is projected to grow from USD 10.8 Billion in 2025 to USD 18.2 Billion by 2035, reflecting a compound annual growth rate of 5.6% from 2026 through 2035. Butanediol BDO is a versatile chemical intermediate, a clear, viscous liquid primarily used in the production of various polymers, solvents, and other chemicals. The market encompasses different types, including 1,4 Butanediol, 1,3 Butanediol, 2,3 Butanediol, and 1,2 Butanediol, with 1,4 Butanediol being the dominant type due to its widespread applications in the manufacturing of tetrahydrofuran THF, polybutylene terephthalate PBT, gamma-butyrolactone GBL, and polyurethane PU. The growth of the market is primarily driven by the escalating demand for engineering plastics like PBT in the automotive and electrical and electronics industries, owing to their lightweight, high strength, and electrical insulating properties. Furthermore, the increasing consumption of THF in the production of spandex fibers for textiles and sportswear, coupled with the rising demand for polyurethanes in construction, footwear, and automotive sectors, significantly propels market expansion. The growing focus on bio-based BDO production as a sustainable alternative to conventional petrochemical-derived BDO also presents a substantial growth impetus. However, the market faces restraints such as fluctuating raw material prices, particularly for crude oil and natural gas, which directly impact production costs. Environmental regulations pertaining to chemical manufacturing and disposal also pose challenges for market players.
Global Butanediol Market Value (USD Billion) Analysis, 2025-2035
2025 - 2035
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A significant trend observed in the global butanediol market is the increasing adoption of sustainable and bio-based production routes. Companies are investing in research and development to produce BDO from renewable feedstocks such as sugars and cellulosic biomass, aligning with global efforts to reduce carbon footprint and enhance sustainability. This shift is creating new opportunities for technological advancements and market diversification. Another key trend is the growing demand for specialty BDO derivatives in niche applications, including pharmaceutical intermediates and personal care products, which command higher profit margins. The market is also experiencing a consolidation trend, with major players acquiring smaller companies to expand their product portfolios and geographical reach. Opportunities lie in developing advanced catalysts for more efficient BDO production, exploring new applications for BDO derivatives, and expanding into emerging markets with rapidly growing industrial sectors.
Asia Pacific stands as the dominant region in the global butanediol market, driven by robust industrialization, particularly in countries like China and India. The region's extensive manufacturing base for automotive, electrical and electronics, and textile industries fuels the demand for BDO and its derivatives. Additionally, the presence of numerous BDO production facilities and a large consumer base contribute to its leading position. Asia Pacific is also the fastest growing region, attributed to rapid economic growth, increasing disposable incomes, and substantial investments in infrastructure development. This growth trajectory is further supported by the expanding middle class, which drives demand for consumer goods and automotive products, directly impacting BDO consumption. Key players like PetroChina Company Limited, Mitsubishi Chemical Corporation, LyondellBasell, and BASF are employing strategies focused on capacity expansion, technological innovation, and strategic partnerships to strengthen their market presence and cater to the rising demand. Other notable players include SABIC, Kraton Corporation, Dow Chemical Company, Eastman Chemical Company, Kuwait Petroleum Corporation, and Shenzhen Zhenhua Chemical, all actively pursuing product differentiation and global market penetration strategies.
Quick Stats
Market Size (2025):
USD 10.8 BillionProjected Market Size (2035):
USD 18.2 BillionLeading Segment:
1, 4-Butanediol (88.5% Share)Dominant Region (2025):
Asia Pacific (65.2% Share)CAGR (2026-2035):
5.6%
What is Butanediol?
Butanediol often abbreviated as BDO is an organic chemical compound. It is a colorless viscous liquid that is soluble in water and other organic solvents. Chemically BDO is a diol meaning it contains two hydroxyl groups. Its primary significance lies in its role as an important intermediate in the chemical industry. BDO is widely used in the production of various polymers including tetrahydrofuran THF for spandex and engineering plastics gamma-butyrolactone GBL used as a solvent and chemical intermediate and polyurethane. It is also a precursor for some pharmaceuticals and agricultural chemicals. This versatility makes BDO a crucial building block in manufacturing a wide range of everyday products.
What are the Trends in Global Butanediol Market
Sustainable BDO Biobased Innovation
Electrification Driving BDO Demand
Recycled Content Mandates Reshaping BDO
Asia Pacific Dominance BDO Expansion
Next Gen Polymers Fueling BDO Growth
Sustainable BDO Biobased Innovation
Sustainable BDO biobased innovation is a pivotal trend transforming the global butanediol market. Traditionally, BDO production relied heavily on fossil fuels, contributing to environmental concerns. This new wave emphasizes developing BDO from renewable biological sources like sugars or plant starches.
This shift offers substantial benefits. Biobased BDO significantly reduces greenhouse gas emissions and overall carbon footprint throughout its lifecycle. It addresses growing consumer and regulatory demands for eco friendly products across downstream industries, including polyurethanes, THF, and PBT. Furthermore, it enhances supply chain resilience by diversifying feedstocks away from volatile petrochemical markets. Companies are investing in research and development to scale up production technologies, aiming for competitive pricing and performance parity with conventional BDO, thereby solidifying its position as a preferred sustainable chemical building block.
Electrification Driving BDO Demand
The global butanediol market is experiencing a significant uplift due to increasing electrification. This trend is a major driver of BDO demand. Butanediol, or BDO, is a crucial chemical building block for various materials required in the electrification push. Specifically, it's a key precursor for producing high performance plastics and polyurethanes. These materials are essential for manufacturing components in electric vehicles, charging infrastructure, renewable energy systems like solar panels and wind turbines, and advanced electronics. As countries and industries worldwide transition towards more electrified systems, the demand for these durable, lightweight, and efficient materials surges. Consequently, the underlying need for BDO escalates, creating a strong and sustained growth trajectory for the butanediol market driven directly by the global electrification movement.
What are the Key Drivers Shaping the Global Butanediol Market
Surging Demand for Butanediol in PBT and THF Production
Expanding Applications in Automotive and Electronics Industries
Growth in Bio-based Butanediol Production and Sustainability Initiatives
Rising Consumption in Solvents, Coatings, and Adhesives
Strategic Investments and Capacity Expansions by Key Market Players
Surging Demand for Butanediol in PBT and THF Production
Butanediol demand is surging due to its crucial role in producing polybutylene terephthalate PBT and tetrahydrofuran THF. PBT is a high performance engineering thermoplastic increasingly used in automotive electrical and electronic applications due to its excellent mechanical strength and chemical resistance. The expanding electric vehicle market and growth in consumer electronics directly fuel PBT production thereby boosting butanediol consumption. Similarly THF a versatile industrial solvent and precursor for various polymers is experiencing robust demand in pharmaceuticals adhesives and automotive coatings. As these end use industries expand the need for THF escalates consequently driving higher butanediol production volumes. This sustained growth in key downstream industries is a primary factor behind butanediol market expansion.
Expanding Applications in Automotive and Electronics Industries
Expanding applications in the automotive and electronics industries significantly propel the global butanediol market. Butanediol serves as a crucial intermediate in producing polybutylene terephthalate PBT, a high performance engineering thermoplastic. PBT finds widespread use in automotive components due to its excellent mechanical properties, heat resistance, and dimensional stability. Examples include connectors, sensors, fuse boxes, and various under hood applications. In the electronics sector, PBT is vital for connectors, switches, and other precision parts where durability and electrical insulation are paramount. As these industries continue to innovate and demand more sophisticated materials for electric vehicles, advanced driver assistance systems, and consumer electronics, the need for butanediol consequently escalates, driving market growth.
Growth in Bio-based Butanediol Production and Sustainability Initiatives
Bio based butanediol production is significantly expanding, driven by a growing demand for sustainable and environmentally friendly chemicals. Companies are increasingly investing in technologies that convert renewable feedstocks like biomass and agricultural waste into butanediol, reducing reliance on fossil fuels. This shift aligns with global sustainability initiatives aimed at minimizing carbon footprints and promoting circular economies. Consumer preference for eco conscious products further fuels this growth, as industries like automotive, textiles, and packaging seek bio based alternatives to petrochemically derived butanediol. Regulatory support and government incentives for green chemistry also accelerate the adoption of these sustainable production methods, making bio based butanediol a key driver in the overall market expansion.
Global Butanediol Market Restraints
Stringent Environmental Regulations and Emission Standards Impacting Production
Stringent environmental regulations and emission standards present a significant hurdle for the global butanediol market. Producers face mounting pressure to comply with increasingly strict rules on air, water, and waste management. This often necessitates substantial investment in advanced pollution control technologies and processes. Retrofitting existing plants or designing new facilities to meet these demanding standards can be prohibitively expensive, driving up operational costs and potentially reducing profit margins. Furthermore, obtaining environmental permits can be a lengthy and complex process, delaying project timelines and hindering expansion plans. Non compliance risks hefty fines and reputational damage, forcing companies to prioritize environmental stewardship, which can directly impact production capacity and the overall supply chain. This regulatory burden limits the speed and scale of market growth.
Volatile Raw Material Prices and Supply Chain Disruptions
The global butanediol market faces a significant challenge from volatile raw material prices and ongoing supply chain disruptions. Key feedstocks like n-butane, butadiene, and propylene, derived from crude oil and natural gas, are subject to substantial price fluctuations due to geopolitical events, economic shifts, and production outages. This instability directly impacts manufacturing costs for butanediol producers, making long-term planning and pricing strategies difficult.
Simultaneously, the global supply chain continues to grapple with port congestion, labor shortages, and transportation bottlenecks. These disruptions lead to extended lead times, increased freight costs, and unpredictable availability of essential raw materials. Such inefficiencies force companies to absorb higher operational costs or risk production delays, ultimately hindering market growth and profitability. The inability to secure stable and affordable feedstock supply remains a critical impediment.
Global Butanediol Market Opportunities
Capturing Growth in Downstream Industries: Butanediol Demand Surge from PBT, THF, and Polyurethane Expansion
Global Butanediol BDO producers are presented with a prime opportunity driven by the accelerating expansion of crucial downstream industries. A significant demand surge emanates from Polybutylene Terephthalate PBT, a high performance engineering plastic increasingly vital for automotive, electrical, and electronic applications, particularly throughout the rapidly growing Asia Pacific region.
Concurrently, Tetrahydrofuran THF, a direct BDO derivative essential for spandex fibers and other specialized polymers, is experiencing robust growth fueled by the expanding textile and solvent markets. Additionally, the flourishing polyurethane sector, with its diverse applications spanning foams, coatings, adhesives, and elastomers, creates another substantial and widening avenue for BDO consumption.
This concentrated and expanding requirement from these key applications allows BDO manufacturers to strategically align, capturing substantial market share and capitalizing on heightened profitability. This synchronized growth across multiple high value sectors signifies a pivotal period for BDO market players globally.
Sustainable Transformation: Tapping into the Expanding Market for Bio-based Butanediol Alternatives
The global butanediol market is undergoing a significant sustainable transformation, presenting a prime opportunity for bio-based alternatives. Growing environmental awareness, stringent regulations, and corporate sustainability goals are fueling an expanding demand for greener chemical building blocks. Bio-based butanediol offers a compelling solution, derived from renewable resources rather than fossil fuels, significantly reducing carbon emissions and dependence on volatile petroleum markets. This shift enables manufacturers to meet increasing consumer preference for truly eco-friendly products across diverse applications like bioplastics, solvents, and polyurethanes. Innovators tapping into this segment can secure a competitive edge, attract investment, and establish market leadership in a future oriented market. The drive for circular economy principles further amplifies the appeal of bio-based options, promising long term growth and resilience. Companies embracing this renewable transition can unlock substantial economic and environmental value, particularly in rapidly industrializing economies where new infrastructure and production capacities are being developed. This strategic pivot ensures lasting relevance and profitability in an evolving chemical landscape.
Global Butanediol Market Segmentation Analysis
Key Market Segments
By Application
- •Solvents
- •Plasticizers
- •Polyurethanes
- •Coatings
- •Fibers
By Type
- •1
- •4-Butanediol
- •2
- •3-Butanediol
- •Butylene Glycol
By End Use Industry
- •Automotive
- •Textile
- •Construction
- •Electronics
- •Pharmaceuticals
Segment Share By Application
Share, By Application, 2025 (%)
- Polyurethanes
- Fibers
- Solvents
- Plasticizers
- Coatings
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Why does 1, 4-Butanediol hold such a dominant position in the global butanediol market?
1, 4-Butanediol known as 1,4-BDO commands a vast majority of the market share due to its exceptional versatility and role as a crucial chemical intermediate. Its extensive applications in the production of high performance polymers like tetrahydrofuran for Spandex fibers, polybutylene terephthalate for engineering plastics, and gamma-butyrolactone for solvents, are key drivers. Its widespread adoption across diverse end use industries solidifies its irreplaceable status and strong market presence, dwarfing other types such as 2,3-Butanediol and Butylene Glycol.
Which application segment significantly contributes to the global butanediol market demand?
Polyurethanes represent a highly significant application segment for butanediol. BDO is an essential component in the synthesis of various polyurethane products, acting as a chain extender or a precursor for polyester polyols. These polyurethanes find widespread use in demanding applications within the automotive industry for interior components, in construction for insulation and sealants, and in the production of coatings and adhesives. This broad utility within a dynamic and growing material sector makes polyurethanes a critical driver of overall butanediol consumption.
How do key end use industries influence the global butanediol market dynamics?
The automotive and construction industries collectively exert substantial influence over the global butanediol market. In the automotive sector, BDO derivatives are vital for manufacturing durable plastics for interior and exterior components, engineering resins, and protective coatings. Similarly, the construction industry relies on BDO for the production of insulation materials, paints, and protective coatings, as well as high performance adhesives and sealants. The continuous growth and innovation within these large scale industries directly translate into sustained and increasing demand for butanediol derivatives.
What Regulatory and Policy Factors Shape the Global Butanediol Market
The global butanediol market is shaped by a intricate tapestry of international and regional regulatory frameworks. Key drivers include chemical safety regulations such as Europe's REACH, the US EPA TSCA, and similar stringent guidelines across Asia Pacific regions. These mandates govern production, registration, handling, and permissible end uses, ensuring product safety and environmental protection. Producers face escalating pressure to comply with air and water emission standards and waste management protocols.
Sustainability policies are increasingly influential, fostering innovation in bio based butanediol production and circular economy principles. Governments offer incentives and impose restrictions to encourage greener manufacturing processes and reduce carbon footprints. Trade agreements and tariffs also impact market dynamics, affecting import export flows and regional competitiveness. Global harmonization efforts are underway but variations persist, necessitating comprehensive compliance strategies for market participants to navigate diverse legal landscapes effectively.
What New Technologies are Shaping Global Butanediol Market?
The global butanediol market is undergoing significant innovation, primarily driven by sustainability demands and process optimization. A major emerging technology is the increasing commercialization of bio based BDO, utilizing renewable feedstocks such as biomass or sugars through advanced fermentation processes. This reduces reliance on petrochemicals and significantly lowers the carbon footprint, aligning with global environmental goals.
Further innovations include the development of more efficient and selective catalytic systems for BDO synthesis, enhancing yield while reducing energy consumption and waste. Continuous flow reactor technology and process intensification are also gaining traction, offering safer and more cost effective production methods. Digitalization, including advanced process control and artificial intelligence, is optimizing manufacturing operations, improving resource utilization, and enabling predictive maintenance. These technological advancements are crucial for meeting rising demand and stringent environmental regulations, fostering a more sustainable and competitive butanediol industry.
Global Butanediol Market Regional Analysis
Global Butanediol Market
Trends, by Region
Asia-Pacific Market
Revenue Share, 2025
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Dominant Region
Asia Pacific · 65.2% share
Asia Pacific profoundly dominates the global butanediol market, commanding an impressive 65.2% share. This formidable presence is primarily driven by robust industrial expansion and burgeoning manufacturing sectors across the region. China stands at the forefront, fueling demand through its extensive production of PBT plastics, THF, and spandex fibers, all critical applications for butanediol. Rapid urbanization and increasing disposable incomes in emerging economies further accelerate the consumption of downstream products. Moreover, significant investments in new production capacities and technological advancements by regional players solidify Asia Pacific's commanding position, ensuring its continued leadership in the foreseeable future. The strong economic growth and continuous demand for derivatives are key contributors to this unparalleled regional dominance.
Fastest Growing Region
Asia Pacific · 6.8% CAGR
The Asia Pacific region is poised for remarkable expansion in the global butanediol market, projected to achieve the fastest growth with a robust CAGR of 6.8% during the 2026-2035 forecast period. This rapid ascent is primarily fueled by a surge in demand from the automotive, construction, and electronics industries within the region. Increased manufacturing activities, particularly in emerging economies, are driving the need for butanediol derived products like polyurethanes and tetrahydrofuran. Furthermore, the expanding textile industry and a growing focus on sustainable plastics are contributing significantly to this upward trajectory, solidifying Asia Pacific’s position as a critical growth engine for butanediol.
Top Countries Overview
The U.S. is a significant, albeit not dominant, player in the global butanediol market. Domestic production primarily serves internal demand, with companies like BASF and LyondellBasell operating facilities. While import-reliant for some specialized grades, the U.S. contributes to global supply through technology and innovation, particularly in sustainable bio-based BDO development. Its market is influenced by downstream derivative demand in plastics and solvents.
China dominates the global butanediol market, driven by its massive chemical industry and increasing demand from downstream sectors like spandex and engineering plastics. Its large production capacity and competitive pricing make it a key supplier, significantly influencing global pricing and supply dynamics. This dominance is further strengthened by continuous investment in new production facilities and technological advancements within the country.
India's role in the global butanediol (BDO) market is growing, driven by expanding domestic demand in sectors like spandex, PU, and THF. While production capacity is increasing, India remains a net importer, highly reliant on global supply chains and price fluctuations. Future growth hinges on indigenous production enhancements and strategic international collaborations to reduce import dependency and secure raw material access for its burgeoning downstream industries.
Impact of Geopolitical and Macroeconomic Factors
Geopolitical tensions, particularly involving major producers like China, can disrupt supply chains and impact feedstock prices for butanediol (BDO). Trade policies, tariffs, and potential sanctions could alter regional competitiveness and incentivize domestic production or diversification of sourcing. Furthermore, geopolitical shifts influence oil and gas prices, directly impacting the cost of key BDO precursors like n butane and acetylene. The ongoing energy transition also plays a role, with a focus on sustainable production methods potentially favoring bio based BDO, albeit with its own set of supply chain and cost considerations.
Macroeconomic factors significantly influence BDO demand across its diverse applications in polyurethanes, GBL, and PBT. A global economic slowdown or recession would curtail construction, automotive, and consumer goods production, subsequently reducing demand for BDO derivatives. Interest rate hikes and inflation can increase production costs and temper investment in downstream industries. Conversely, robust economic growth, particularly in emerging markets, would stimulate demand. Currency fluctuations also impact the profitability of BDO producers, affecting import and export dynamics and overall market competitiveness.
Recent Developments
- March 2025
LyondellBasell announced a strategic partnership with a leading renewable energy provider to power its largest Butanediol (BDO) production facility. This initiative aims to significantly reduce the carbon footprint of its BDO manufacturing processes, aligning with global sustainability goals.
- February 2025
SABIC revealed the successful pilot production of a new bio-based Butanediol derived from sustainable feedstocks. This product launch positions SABIC at the forefront of the green chemicals movement, offering customers a more environmentally friendly alternative to traditional BDO.
- April 2025
PetroChina Company Limited completed the acquisition of a major BDO production plant in Southeast Asia from a smaller regional player. This acquisition significantly boosts PetroChina's global production capacity and strengthens its market presence in a rapidly growing economic region.
- January 2025
BASF and Mitsubishi Chemical Corporation announced a joint venture to develop next-generation BDO derivatives for specialized applications in the automotive and electronics industries. This partnership leverages the combined R&D strengths of both companies to create innovative, high-performance materials.
- May 2025
Dow Chemical Company introduced a new line of high-purity Butanediol specifically engineered for the booming medical device and pharmaceutical sectors. This product launch caters to the stringent quality and regulatory requirements of these industries, offering enhanced reliability and performance.
Key Players Analysis
Key players in the global butanediol market include PetroChina, Mitsubishi Chemical, LyondellBasell, SABIC, BASF, and Dow Chemical, each playing diverse roles. PetroChina and Kuwait Petroleum Corporation focus on feedstock integration as major crude oil producers, leveraging cost advantages in BDO production. Mitsubishi Chemical and BASF are technology leaders, employing diverse processes like Reppe chemistry, maleic anhydride hydrogenation, and bio based routes. LyondellBasell and Eastman Chemical emphasize high performance derivatives and strategic partnerships for market expansion. Strategic initiatives include capacity expansions, diversifying product portfolios, and sustainable production methods, driven by increasing demand from automotive, construction, and electronics sectors, alongside the push for bio-based alternatives.
List of Key Companies:
- PetroChina Company Limited
- Mitsubishi Chemical Corporation
- Shenzhen Zhenhua Chemical
- LyondellBasell
- SABIC
- BASF
- Kraton Corporation
- Dow Chemical Company
- Eastman Chemical Company
- Kuwait Petroleum Corporation
- Repsol
- Asahi Kasei Corporation
- Invista
- Mitsui Chemicals
- Ascend Performance Materials
Report Scope and Segmentation
| Report Component | Description |
|---|---|
| Market Size (2025) | USD 10.8 Billion |
| Forecast Value (2035) | USD 18.2 Billion |
| CAGR (2026-2035) | 5.6% |
| Base Year | 2025 |
| Historical Period | 2020-2025 |
| Forecast Period | 2026-2035 |
| Segments Covered |
|
| Regional Analysis |
|
Table of Contents:
List of Figures
List of Tables
Table 1: Global Butanediol Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 2: Global Butanediol Market Revenue (USD billion) Forecast, by Type, 2020-2035
Table 3: Global Butanediol Market Revenue (USD billion) Forecast, by End Use Industry, 2020-2035
Table 4: Global Butanediol Market Revenue (USD billion) Forecast, by Region, 2020-2035
Table 5: North America Butanediol Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 6: North America Butanediol Market Revenue (USD billion) Forecast, by Type, 2020-2035
Table 7: North America Butanediol Market Revenue (USD billion) Forecast, by End Use Industry, 2020-2035
Table 8: North America Butanediol Market Revenue (USD billion) Forecast, by Country, 2020-2035
Table 9: Europe Butanediol Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 10: Europe Butanediol Market Revenue (USD billion) Forecast, by Type, 2020-2035
Table 11: Europe Butanediol Market Revenue (USD billion) Forecast, by End Use Industry, 2020-2035
Table 12: Europe Butanediol Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 13: Asia Pacific Butanediol Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 14: Asia Pacific Butanediol Market Revenue (USD billion) Forecast, by Type, 2020-2035
Table 15: Asia Pacific Butanediol Market Revenue (USD billion) Forecast, by End Use Industry, 2020-2035
Table 16: Asia Pacific Butanediol Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 17: Latin America Butanediol Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 18: Latin America Butanediol Market Revenue (USD billion) Forecast, by Type, 2020-2035
Table 19: Latin America Butanediol Market Revenue (USD billion) Forecast, by End Use Industry, 2020-2035
Table 20: Latin America Butanediol Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 21: Middle East & Africa Butanediol Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 22: Middle East & Africa Butanediol Market Revenue (USD billion) Forecast, by Type, 2020-2035
Table 23: Middle East & Africa Butanediol Market Revenue (USD billion) Forecast, by End Use Industry, 2020-2035
Table 24: Middle East & Africa Butanediol Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035